Franchising Since: 1999
Headquarters: Irvine, California
Country of Origin: Australia
Estimated Number of Units: 105 (US)
Franchise Description: The franchisor is Aussie Pet Mobile, Inc. The franchisor’s parent company is Home Franchise Concepts, LLC. Aussie Pet Mobile franchises specialize in mobile pet grooming services. These services include bathing and grooming domestic pets including dogs and cats. These services are provided from a Sprinter Van acquired by franchisees and customized by the franchisor with a required upfit package, also acquired by franchisees.
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Territory Granted: During the term of the Franchise Agreement, the franchisor will grant franchisees a protected territory. The franchisor will not establish another franchised business in the territory that sells mobile pet grooming services using its system and marks. The territory will be described by United States Postal Service ZIP codes in the Franchise Agreement. Each territory will consist of a minimum 33,000 households. The ZIP codes making up the territory will not change even if their boundaries are expanded or contracted by the Postal Service or if the population within them decreases or increases.
Obligations and Restrictions: The franchisor prefers franchisees who plan to participate actively in the direct operation and daily affairs of the franchised business. If franchisees do not operate the franchised business themselves, they must employ at least one manager on a full-time basis. If franchisees operate the franchise as a company, the manager does not have to have an equity interest in the company. Franchisees must disclose the identity of the manager to the franchisor and, should the identity of the manager change, they must notify the franchisor in writing. Franchisees may offer and sell in the franchised business only the goods and services that the franchisor has authorized franchisees to sell.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two consecutive five-year renewal terms are available, if requirements are met.
Financial Assistance: If franchisees meet the franchisor’s credit standards, it will, at the franchisee’s request, provide financing for the initial franchise fee and part of the territory fees. The franchisor discounts the initial franchise fee by 15% for new franchisees who are currently serving or honorably discharged veterans of the United States armed forces and their spouses.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $19,950 | $19,950 |
Territory Fees | $100,000 | $100,000 |
Sprinter Van Down Payment for Financing Agreement (for first van) | $25,000 | $30,000 |
Van Payments (Financed) | $2,100 - $2,600 per month for 60 months per van (total of $6,300 - $7,800 for first three months for first van). | |
Sprinter Van Down Payment for Lease Agreement (for first van) | $10,000 | $10,000 |
Van Payments (Leased) | $2,400 per month for 60 months (total of $7,200 for first three months for first van). | |
Computer Hardware and Software | $0 | $750 |
Business Licenses | $350 | $350 |
Grand Opening and Ongoing Advertising (first three months) | $9,000 | $11,000 |
Initial Insurance for First Van ($800 per month for first three months) | $2,400 | $2,400 |
Expenses During Training | $1,475 | $3,650 |
Shipping of Customized Van (for first van) | $0 | $3,400 |
Online Marketing Package ($550 per month) | $1,650 | $1,650 |
Van Storage (for first van) | $0 | $1,500 |
Additional Funds - 3 months | $15,000 | $25,000 |
ESTIMATED TOTAL | $167,325 | $208,650 |
Other Fees
Type of Fee | Amount |
Royalty | Franchisees must pay the greater of: (a) 7.0% - 4.0% of the gross revenue for the immediately preceding month (percentage based on level of income for month) or (b) minimum royalty in the amount set forth in the FDD. |
National Advertising Fund Payment | Franchisees must pay the greater of 2% of the gross revenue for the immediately preceding month or $500. |
Technology Fee | Currently $450 for the first territory, $100 for second and subsequent contiguous territories up to the first 7 territories. |
CMS Fee | Aggregate $400 per month up to 5 vans. |
Van Support Subscription Fee | $225 per month per van for 7 years. Fee for second and subsequent vans commences on the van delivery date. |
Training for Additional Personnel | First two attendees are free. The franchisor may charge up to $150 per day for additional attendees, plus travel, accommodation and meals. |
Additional Territory Fee | An amount equal to the then-current initial territory fee if franchisees buy an additional territory in the future. |
Encroachment Payment | 100% of gross sales in another franchisee’s territory. |
Fees on Transfer | If selling to a new franchisee, greater of $24,950 or 6% of sale price up to a maximum of $50,000. If selling to an existing franchisee, $5,000 transfer fee per territory. |
Transfer Lead Referral Fee | The then-applicable lead referral fee, currently $15,000, or the amount of any broker fees that the franchisor must pay a third party (not an employee of the franchisor’s). |
Renewal Fee | $5,000 |
Insufficient Funds or Late Payment Fee | Currently $300, subject to change. |
Late Reporting Administrative Fee | Currently $300, subject to change. |
Convention Fee | Fee will vary depending on venue and location but will not exceed $2,000 annually. |
Optional Meetings and Trainings | As determined by the franchisor, but generally $100 - $1,500 depending on venue and mode of delivery plus travel, accommodation and some meals. |
Additional Training Requested by Franchisees | Currently $500 per day, plus travel and expenses. |
Audit | Cost of inspection or audit. |
Insurance | Franchisees must reimburse the franchisor’s costs. |
Costs and Attorneys’ Fees | Varies. |
Indemnification | Varies. |
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